5. Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8% compounded annually. In other words, how much do you have to deposit now (with the second deposit in the amount of $1,000 at the end of the first year) so that you will be able to withdraw $600 at the end of the second year through the fourth year, and $800 at the end of the fifth year, where the bank pays you 8% annual interest on your balance? $600 2 $600 3 $600 $800 S

5. Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8% compounded annually. In other words, how much do you have to deposit now (with the second deposit in the amount of $1,000 at the end of the first year) so that you will be able to withdraw $600 at the end of the second year through the fourth year, and $800 at the end of the fifth year, where the bank pays you 8% annual interest on your balance? $600 2 $600 3 $600 $800 S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Find the equivalent present worth of the cash receipts in the accompanying diagram,
where i = 8% compounded annually. In other words, how much do you have to deposit
now (with the second deposit in the amount of $1,000 at the end of the first year) so that
you will be able to withdraw $600 at the end of the second year through the fourth year,
and $800 at the end of the fifth year, where the bank pays you 8% annual interest on your
balance?
$1,000
$600
2
Years
$600
3
$800
$600
1 1

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